DISCUSS QUESTION #3 Consider the following information from 2 companies: Island LLC. and Hawaii INC. Island LLC currently has $300,000 in accounts receivable and DSO is 50 days. It wants to reduce DSO to 20 days by forcing customers to pay their bills on time. If they want to reduce DSO, they will need to change their current policy. If this new policy is adopted, the average sales will fall by 15%. Hawaii INC recently reported net income of $7,000,000. It has 500,000 shares of common stock, which currently trades at $28 per share. Hawai continues to expand and anticipates net income 1 year from now at 13,000,000. Over the next year, they also anticipate issuing an additional 80,000 shares of stock so that 1 year from now, they will have 580,000 shares of common stock. PRIMARY POST: Question 3 1) For Island LLC, what are Current Sales? 2) For Island LLC, what will Sales be after the policy change? 3) For lsland LLC, what will the accounts receivable be following the change? 4) What is the current EPS for Hawaii INC? 5) Assume Hawaii INC will maintain its current price/earning ratio, what will be its stock price 1 year from now